8.1 Economic Systems

In a capitalist economy, the laws of supply and demand determine price.

Focus on differences within a society

What kind of tax rates do socialist economies generally have?

Capitalism is also called a

doctrine opposing governmental interference in economic affairs

One of the benefits of capitalism is

the government controls all means of production and thus creates the ultimate form of monopoly

evenly distributed property is a feature of a capitalist economy

the rivalry between companies selling similar products and services with the goal of achieving revenue, profit, & growth

people put land, labor, and capital to productive use

Karl Marx believed that the bourgeoisie would overthrow the proletariat.

government ownership of means of production

happens because prices are regulated by the laws of supply and demand

Which is a factor of production?

All businesses compete with one another for profit, preventing any one business from gaining power over the entire field

government plans how the economy will develop

Critics of capitalism assert that

private individuals or corporations control the factors of production

What is the benefit of competition in a free market system?

financial support given by the government through taxation to people in need